Led by a continued growth in its brands and retail business, Arvind Limited has posted a 58 per cent growth in its consolidated net profit for the quarter ended September 30, 2011. Arvind' consolidated net profit went up to Rs 62 crore, as against Rs 39 crore in the corresponding quarter last year on account of improved EBITDA margin.
One of the largest integrated textile, apparel and branded apparel player, Arvind also saw margins improving in its textile business despite rise in raw material costs. The consolidated revenue for the second quarter of fiscal 2011-12 is up by 23 per cent at Rs 1256 crore as against Rs 1025 crore in the corresponding quarter of the previous year. At the operating level, the company's consolidated EBITDA increased by 40 per cent at Rs 178 crore as against Rs 128 crore for the corresponding quarter of the previous year.
"While revenue growth continues to be led by brands and retail business, operating margins have improved on account of improvement in EBITDA margin in textile business by around 3 per cent. Textile business has improved the margins despite sharp increase in raw material cost," said Jayesh Shah, director and chief financial officer, Arvind Ltd.
Arvind's branded apparel and retail wing saw revenue growth of 46 per cent, followed by textile at 18 per cent. According to Shah, both the segments were key drivers for growth in financial performance on a consolidated level. Arvind's EBITDA margin too improved to 14.2 per cent from 12.5 per cent in the corresponding quarter of the previous year. Arvind is expecting a 20 per cent revenue growth during the current financial year. "We hope to achieve 20 per cent revenue growth on account of robust growth in brands and retail businesses and capacity expansion in woven fabrics," Shah added.
